Register to learn more about investing!

* indicates required
October 10, 2024

5 Reasons Vertex Is THE Pharmaceutical Company to Watch in 2021 and Beyond

Register to get the latest investor tips

Register Now

Vertex Pharmaceuticals (VRTX) is making a name for itself. Known for developing treatments for Cystic Fibrosis, this company is catching the eyes of investors around the globe. Why, exactly, is everyone paying attention? Let’s talk about the top five reasons why investors should watch Vertex in 2021.

1. Monopoly on Cystic Fibrosis Treatment

This company has made a name for itself over the past few years contributing to the fight against Cystic Fibrosis. Cystic Fibrosis is a genetic disease that is primarily identified by reoccurring, persistent lung infections, making it difficult for an individual to breathe. Since the cause is entirely genetic, it hasn’t proven easy to treat.

All four of the drugs that Vertex has in their portfolio treat CF. This basically has created a monopoly situation where Vertex is the only name in the game. What’s even better is that they have three additional CF drugs in development. Once those move closer to approval, their monopoly will only further solidify.

The patents on these drugs don’t even start to expire until 2027, with the most recent patent for Trikafta (the newest drug to receive approval in the US and Europe) isn’t due to expire until 2037!

2. Competitive Advantage

Competitors are working on CF treatments, however, Vertex has a clear advantage with their existing patents. They also already clearly dominate the market of CF patients. As many as 50% of CF patients in the US, Europe, and Australia are already using Vertex medications to treat and manage their CF.

Their closest competition (AbbVie, Inc) is developing therapies that have moved on to trials. These trials have been in Phase 2 for quite some time, and additional changes to the trials continue to be made. This makes it look even less likely that AbbieVie will be able to loosen Vertex’s monopoly anytime soon.

Vertex is developing other treatments themselves. The biggest difference between them and their competition is they have this incredible ability to blast through the FDA approval process so quickly that it makes heads spin. Their latest drug Trikafta was approved by the FDA in just 3.5 years which is only one-third the amount of time the process normally takes. Their development process didn’t just move at lightning speed; it also earned them a designation as a miracle breakthrough drug.

Pulling so far ahead of the rest of their competition so quickly is bound to attract more investors, which in turn is naturally going to continue to the cycle of fast-moving research and development. It’s also going to leave less development money on the table for everyone else.


Register to get the latest investor tips

Register Now

3. Huge 2020 Growth

Trikafta has been approved for CF patients over the age of 12. As the very first of its kind to be able to serve this wide range of patients, the incredible yield from this product is no doubt going to continue to reap benefits. This drug managed to reach the coveted “Orphan Drug” designation, which is part of the reason they were able to rush through the FDA approval process so very quickly.

This designation is given to drugs thought to have superior efficacy in treating patients from specific populations. It also gives them seven years with exclusive marketing rights as well as 25% of their clinical/R&D costs covered. When you consider that every single other drug they have in the pipeline also has been given this status that protects Vertex from basically all complaints about their pricing? Well, that’s a lot going in their favor.

Revenue growth year over year for 2020 was over 49%, with profit growth at 171%. When you compare profit growth in 2019 at 17.6%, that is a mind-boggling increase. This is largely due to the approval of Trikafta, which created a considerable jump in revenues which went 420 M in 2019, to an incredible 3.86B in 2020. This is even more remarkable when you consider that the EU did not approve the drug (called Kaftrio in European markets) until halfway through the year.

The impact of this one product reaching the market has resulted in Vertex having $6.7B in cash on hand, which is easily double the amount of the $3.8B they reported for 2019. With a strong history of maintaining a comparatively low amount of debt (less than $1B), they ended the year with one of the industry’s strongest balance sheets.


Register to get the latest investor tips

Register Now

4. High Cash Flow for Development

What did Vertex do with this phenomenal amount of cash they made last year? Well, they aren’t paying stock dividends. Instead, they are taking that money and pumping it straight back into development. With 2021 product revenues expected to range between $6.7B and $6.9B, they have a lot of available cash to do this!

Vertex has a number of other drugs in development. These, of course, are all in various different stages, and it could be a number of years before any of them pay off. They are looking to further strengthen their monopoly on the CF market with a few new combinations of molecules used in existing products. They also plan on expanding into new areas.

Vertex management indicates that it is also actively looking for new assets to acquire in other specialty markets. Obviously, they are expecting to be able to recreate this success in other areas and are seeking new opportunities. It sure looks like they are betting those risks will pay off.

5. New Drugs Coming Down the Pipeline

If we take a good look at the new products in development already, we can get a feel for how this investment that they are making in development might play out.

VX-147, which is already in phase 2 trials, targets a genetic cause of kidney disease. More data is expected on this trial later this spring which is likely to provide a mid-year boost for Vertex if the news is positive.

They are also working with Crispr Therapeutics, a big name in the field, to develop CTX001, which is expected to work as a gene therapy that treats both sickle cell disease and beta thalamissa. Crispr is a well-known player in the gene game who isn’t likely to take a risk with a one-drug wonder. Every finger points at successful results.

Finally, there is VX-150 which is also in phase 2 trials. This drug is aimed at stopping pain by using a novel mechanism. So long as the trials show it works without side effects, this one currently has the most potential to generate the most income.

 

There’s obviously a lot of reasons to pay attention to Vertex as the rest of 2021 continues. No doubt they are going to pull a strong year this year since nearly 50% of their target patient group has yet to get a shot at their latest and greatest.

There is also some talk that the global figures for exactly how big this patient group is might be off by a whole lot. If this number is off by the current modest estimate of 25,000, then Vertex could easily see an additional $5B in revenue over the next five years. When you combine that with the potential of all of the other drugs they have in development AND the sweetheart status they have obtained from the FDA? There is no wonder at all that investors are not just talking about them but buying a share of that potential for themselves.



Be the first to find out what the Nose knows.

Sign up for the TraderNose Newsletter and receive updates on Vertex and other hot small-cap stocks.


Read full disclaimer here.

Disclaimer

TraderNose profiles are not a solicitation or recommendation to buy, sell or hold securities. TraderNose is a paid advertiser and is not offering securities for sale. Neither TraderNose nor its owners, operators, affiliates or anyone disseminating information on its behalf is registered as an Investment Advisor under any federal or state law and none of the information provided by TraderNose its owners, operators, affiliates or anyone disseminating information on its behalf should be construed as investment advice or investment recommendations.

TraderNose does not recommend that the securities profiled should be purchased, sold or held and is not liable for any investment decisions by its readers or subscribers.

Information presented by TraderNose may contain “forward-looking statements ” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance, are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements may be identified through the use of words such as “expects, ” “will, ” “anticipates,” “estimates,” “believes,” “may,” or by statements indicating that certain actions “may,” “could,” or “might” occur.

THIS SITE IS PROVIDED BY TraderNose ON AN “AS IS” AND “AS AVAILABLE” BASIS. TraderNose MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE OPERATION OF THIS SITE OR THE INFORMATION, CONTENT, MATERIALS, OR PRODUCTS INCLUDED ON THIS SITE. YOU EXPRESSLY AGREE THAT YOUR USE OF THIS SITE IS AT YOUR SOLE RISK.
TO THE FULL EXTENT PERMISSIBLE BY APPLICABLE LAW, TraderNose DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. TraderNose DOES NOT WARRANT THAT THIS SITE, IT’S SERVERS, OR E-MAIL SENT FROM TraderNose ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. TraderNose, ITS MEMBERS, MANAGERS, OWNERS, AGENTS, AND EMPLOYEES WILL NOT BE LIABLE FOR ANY DAMAGES OF ANY KIND ARISING FROM THE USE OF THIS SITE, INCLUDING, BUT NOT LIMITED TO DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, AND CONSEQUENTIAL DAMAGES.
CERTAIN STATE LAWS DO NOT ALLOW LIMITATIONS ON IMPLIED WARRANTIES OR THE EXCLUSION OR LIMITATION OF CERTAIN DAMAGES. IF THESE LAWS APPLY TO YOU, SOME OR ALL OF THE ABOVE DISCLAIMERS, EXCLUSIONS, OR LIMITATIONS MAY NOT APPLY TO YOU, AND YOU MIGHT HAVE ADDITIONAL RIGHTS.
By using TraderNose, you agree, without limitation or qualification, to be bound by, and to comply with, these Terms of Use and any other posted guidelines or rules applicable.
The website contains links to other related World Wide Web Internet sites and resources. TraderNose is not responsible for the availability of these outside resources, or their contents, nor does TraderNose endorse nor is TraderNose exclusive responsible for any of the contents, advertising, products or other materials on such sites. Under no circumstances shall TraderNose be held responsible or liable, directly or indirectly, for any loss or damages caused or alleged to have been caused by use of or reliance on any content, goods or services available on such sites. Any concerns regarding any external link should be directed to its respective site administrator or webmaster.
You agree to indemnify and hold TraderNose, its officers, directors, owners, agents and employees, harmless from any claim or demand, including reasonable attorneys fees, made by any third party due to or arising out of your use of the website, the violation of these Terms of Use by you, or the infringement by you, or other user of the website using your computer, of any intellectual property or other right of any person or entity. We reserve the right, at our own expense, to assume the exclusive defense and control of any matter otherwise subject to indemnification.

TraderNose is owned and operated by Pulp and Fiber Inc., which is a Canadian based corporation. We are paid advertisers, also known as stock touts or stock promoters, who disseminate favorable information (this “Article”) about publicly traded companies (the “Profiled Issuers”).

We publish the Information on our website, TraderNose.com and in newsletters, text message alerts, audio services, live interviews, featured “research” reports, on message boards and in email communications for specific time periods that are agreed upon between us and the Profiled Issuer and/or third party paying us. Our publication of the Information is known as a “Campaign”. This information may be sent to potential investors at different times that are minutes, hours, days or even weeks apart. Typically, the trading volume and price of a Profiled Issuer’s securities increases after the information is provided to the first group of investors. Therefore, the later an investor receives the Information, the more likely it is that he will suffer trading losses if they purchase the securities of a Profiled Issuer late in a Campaign.

Third Parties paying us to market the Profiled Issuer we believe intend to sell their shares they hold while we tell investors to purchase during the Campaign.

The Information we publish in the Campaign is only a snapshot that provides only positive information about the Profiled Issuers. The Information consists of only positive content. We do not and will not publish any negative information about the Profiled Issuers; accordingly, investors should consider the Information to be one-sided and not balanced, complete, accurate, truthful and / or reliable. The Information we publish is based solely on Information provided to us by the Profiled Issuers. We do not conduct any independent research on Profiled Issuers. We do not verify or confirm any portion of the Information. We do not conduct any due diligence, nor do we research any aspect of the Information including the completeness, accuracy, truthfulness and/or reliability of the Information. We do not review the Profiled Issuers’ financial condition, operations, business model, management or risks involved in the Profiled Issuer’s business or an investment in a Profiled Issuer’s securities.

All information in our Campaign is publicly available information from 3rd party sources and / or the Profiled Issuers and/or the 3rd parties that hire us. We may also obtain the Information from publicly available sources such as the OTC Markets, Google, NASDAQ, NYSE, Yahoo, Bing, the Securities and Exchange Commission’s Edgar database or other available public sources.

We publish information about Profiled Issuers because we are compensated to advertise them and not for any other reason. Publishing of information does not constitute a stock “pick” by analyst. If an investor relies solely on the Information in making an investment decision it is highly probable that the investor will lose most, if not all, of his or her investment. Investors should not rely on the Information to make an investment decision.

The source of our compensation varies depending upon the particular circumstances of the Campaign. In certain cases, we are compensated by the Profiled Issuers, third party shareholders, and / or other parties related to the Profiled Issuers such as officers and/or directors who will derive a financial or other benefit from an increase in the trading price and/or volume of a Profiled Issuer’s securities.
We make no warranty and / or representation about the Information, including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable and as such, your use of the Information is at your own risk. The Information is provided as is without limitation.

We are not, and do not act in the capacity of any of the following; as such, you should not construe our activities as involving any of the following: an independent adviser or consultant; a fortune teller; an investment adviser or an entity engaging in activities that would be deemed to be providing investment advice that requires registration either at the federal and / or state level; a broker-dealer or an individual acting in the capacity of a registered representative or broker; a stock picker; a securities trading expert; a securities researcher or analyst; a financial planner or one who engages in financial planning; a provider of stock recommendations; a provider of advice about buy, sell or hold recommendations as to specific securities; or an agent offering or securities for sale or soliciting their purchase.

There are numerous risks associated with each Profiled Issuer and investors should undertake a full review of each Profiled Issuer with the assistance of their financial, legal, and tax advisers prior to purchasing the securities of any Profiled Issuer.

We are not objective or independent and have multiple conflicts of interest. The Profiled Issuers and parties hiring us have conflicts of interest. Third parties that have hired us and own shares will sell these shares while we tell investors to purchase, and this selling of the Profiled Issuer’s securities will likely cause investors to suffer losses.

Our publication of the Information involves actual and material conflicts of interest including but not limited to the fact that we receive monetary compensation in exchange for publishing the (favorable) Information about the Profiled Issuers; and we do not publish any negative information, whatsoever, about the Profiled Issuers; in addition to the fact that while we do not own the Profiled Issuer’s securities, the third parties that hired us do, and intend to sell all of these securities during the Campaign while we publish favorable information that instructs investors to purchase, and this selling of the Profiled Issuer’s securities will likely cause investors to suffer losses.

We are not responsible or liable for any person’s use of the Information or any success or failure that is directly or indirectly related to such person’s use of the Information because we have specifically stated that the information is not reliable and should not be relied upon for any purpose. We are not responsible for omissions and / or errors in the Information and we are not responsible for actions taken by any person who relies upon the Information.

We urge Investors to conduct their own in-depth investigation of the Profiled Issuers with the assistance of their legal, tax and/or investment adviser(s). An investor’s review of the Information should include but not be limited to the Profiled Issuer’s financial condition, operations, management, products and / or services, trends in the industry and risks that may be material to the profiled Issuer’s business and other information he and his advisers deem material to an investment decision. An investor’s review should include, but not be limited to a review of available public sources and information received directly from the Profiled Issuers or from websites such as Google, Yahoo, Bing, OTC Markets, NASDAQ, NYSE, www.sec.gov or other available public sources.

We are providing you with this disclaimer because we are publishing advertisements about penny stocks. Because we are paid to disseminate the Information to the public about securities, we are required by the securities laws including Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, and Section 17(b) of the Securities Act of 1933, as amended (the “Securities Act”), to specifically disclose my compensation as well as other important information. This information includes that we may hold, as well as purchase and sell, the securities of a Profiled Issuer before, during and after we publish favorable Information about the Profiled Issuer. Our compensation is set forth below. We may urge investors to purchase the securities of a Profiled Issuer while we sell my own shares. The anti-fraud provisions of federal and state securities laws require us to inform you that we may engage in buying and selling of Profiled Issuer’s securities before, during and after the Campaigns.

You acknowledge that any investment in the Profiled Issuers involves a high degree of risk and uncertainty. The securities may be subject to extreme volume and price volatility, especially during the Campaigns. Favorable past performance of a Profiled Issuer does not guarantee future results. If you purchase the securities of the Profiled Issuers, you should be prepared to lose your entire investment. Some of the risks involved in purchasing securities of the Profiled Issuers include, but are not limited to the risks stated below.

We do not endorse, independently verify or assert the truthfulness, completeness, accuracy or reliability of the Information. We conduct no due diligence or investigation whatsoever of the Information or the Profiled Issuers and we do not receive any verification from the Profiled Issuer regarding the Information we disseminate.

If we publish any percentage gain of a Profiled Issuer from the previous day close in the Information, it is not and should not be construed as an indication that the future stock price or future operational results will reflect gains or otherwise prove to be advantageous to your investment.

The Information may contain statements asserting that a Profiled Issuer’s stock price has increased over a certain period of time which may reflect an arbitrary period of time, and is not predictive or of any analytical quality; as such, you should not rely upon the (favorable) Information in your analysis of the present or future potential of a Profiled Issuer or its securities.

The Information should not be interpreted in any way, shape, form or manner whatsoever as an indication of the Profiled Issuer’s future stock price or future financial performance.

You may encounter difficulties determining what, if any, portions of the Information are material or non-material, making it all the more imperative that you conduct your own independent investigation of the Profiled Issuer and its securities with the assistance of your legal, tax and financial advisor.

When 3rd parties that hire us acquire, purchase and/or sell the securities of the Profiled Issuers, it may (a) cause significant volatility in the Profiled Issuer’s securities; (b) cause temporary but unrealistic increases in volume and price of the Profiled Issuer’s securities; (c) if selling, cause the Profiled Issuer’s stock price to decline dramatically; and (d) permit themselves to make substantial profits while investors who purchase during the Campaign experience significant losses.

The securities of the Profiled Issuers are high risk, unstable, unpredictable and illiquid which may make it difficult for investors to sell their securities of the Profiled Issuers.

We may hire third party service providers and stock promoters to electronically disseminate live news regarding the Profiled Issuers, yet we have no control over the content of and do not verify the information that the Profiled Issuers and/or third party service providers publish. These third party service providers are likely compensated for providing positive information about the Issuer and may fail to disclose their compensation to you.

If a Profiled Issuer is a SEC reporting company, it could be delinquent (not current) in its periodic reporting obligations (i.e., in its quarterly and annual reports), or if it is an OTC Markets Pink Sheet quoted company, it may be delinquent in its Pink Sheet reporting obligations, which may result in OTC Markets posting a negative legend pertaining to the Profiled Issuer at www.otcmarkets.com, as follows: (i) “Limited Information” for companies with financial reporting problems, economic distress, or that are unwilling to file required reports with the Pink Sheets; (ii) “No Information,” which characterizes companies that are unable or unwilling to provide any disclosure to the public markets, to the SEC or the Pink Sheets; and (iii) “Caveat Emptor,” signifying buyers should be aware that there is a public interest concern associated with a company’s illegal spam campaign, questionable stock promotion, known investigation of a company’s fraudulent activity or its insiders, regulatory suspensions or disruptive corporate actions.

If the Information states that a Profiled Issuer’s securities are consistent with the future economic trends or even if your independent research indicates that, you should be aware that economic trends have their own limitations, including: (a) that economic trends or predictions may be speculative; (b) consumers, producers, investors, borrowers, lenders and/or government may react in unforeseen ways and be affected by behavioral biases that we are unable to predict; (c) human and social factors may outweigh future economic trends that we state may or will occur; (d) clear cut economic predictions have their limitations in that they do not account for the fundamental uncertainty in economic life, as well as ordinary life; (e) economic trends may be disrupted by sudden jumps, disruptions or other factors that are not accounted for in economic trends analysis; in other words, past or present data predicting future economic trends may become irrelevant in light of new circumstances and situations in which uncertainty becomes reality rather than predicted economic outcome; or (f) if the trend predicted involves a single result, it ignores other scenarios that may be crucial to make a decision in the event of unknown contingencies.

The Information is presented only as a brief snapshot of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities. You should consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.otcmarkets.com or other electronic media, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the OTCMarkets.com; (c) obtaining and reviewing publicly available information contained in commonly known search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.org. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and the OTC Markets and/or have negative legends and designations at otcmarkets.com.

TraderNose, reserves the right, at its sole discretion, to change, modify, add and/ or remove all or part of this Disclaimer and / or Terms of Use at any time.

We have been compensated by Profiled Issuers are follows: